AUD/USD Forecast: Chances of additional slides on US-China trade tensions

This article was originally published on this site

AUD/USD Current Price: 0.6856

  • RBA’s Monetary Policy Statement showed policymakers are concerned about cutting further.
  • Uncertainty mounts about US-China trade developments after Trump’s comments.
  • AUD/USD technically bearish, break below 0.6840 would open doors for a steeper decline.

The AUD/USD pair fell Friday to 0.6847, its lowest for the week, closing it a handful of pips above this last. The Aussie suffered ever since the day started, undermined during Asian trading hours by the Reserve Bank of Australia quarterly Monetary Policy Statement, which showed that policymakers are concerned that additional rate cuts might backfire by denting consumer sentiment. The pair came under renewed selling pressure on the back of news suggesting that the US President hasn’t decided yet on rolling back tariffs. Meanwhile, the greenback remained the strongest despite seesawing sentiment, amid prevalent demand for US equities, with Wall Street settling near record highs. There’re no macroeconomic releases scheduled in Australia at the beginning of the week.

AUD/USD short-term technical outlook

The AUD/USD pair is at risk of extending its decline, according to the daily chart, as technical indicators head firmly south although within neutral levels, while the price rests above its 20 and 100 DMA, both converging around the mentioned low. The 0.6840 has proved to be a strong support in the past, with the decline most likely accelerating once the price breaks below it. In the shorter term, and according to the 4-hour chart, the pair is also at risk of falling further, as it settled below its 20 and 100 SMA, with the shorter one heading south. Technical indicators in this time-frame have settled near fresh weekly lows, far from suggesting downward exhaustion.

Support levels: 0.6840 0.6800 0.6770

Resistance levels: 0.6895 0.6930 0.6965

View Live Chart for the AUD/USD